Endo will have $120 million to expand its fill-finish manufacturing operations in Michigan as part of a deal it inked with the federal government to produce critical medicines.
Under the agreement, the U.S. government will fund about $90 million of the total cost of the expansion at the Rochester, Michigan, facility, which will be capable of processing liquid or lyophilized products that require a biosafety level 2 containment, the Dublin-based pharma said.
The plan also includes expanded product inspection and packaging capacity along with exclusive fill-finish manufacturing services for the government.
The contract falls under the Defense Production Act, which is focused on product supply chain issues and strengthening the manufacture of domestic essential medicines.
News of the contract may be just what the company needs to bolster its business, as last year it was in the midst of a cost-cutting program. The pharma faced several years of challenges that ranged from opioid litigation, the FDA pulling Endo’s pain med Opana ER from the market and a failed attempt in 2019 to buy sterile injectables company Somerset Therapeutics for $190 million.
Last November, the company announced it would eliminate 560 jobs by the first half of 2023 to save between $85 million and $95 million a year. Additionally, Endo said it would exit manufacturing facilities in California and New York and sell off an active pharmaceutical ingredient site in India.